Mountain View Insurance – Rental Property Landlord Insurance
Rental Property, also known as landlord insurance, is very similar to a homeowners policy except it takes away the majority of Coverage C coverage which is reserved for personal property coverage. Here is a short list of some of the coverage options to consider with Rental Property Insurance:
- Dwelling Coverage
- Personal Property Coverage
- Liability Coverage
- Loss of Income
Rental Property Insurance – Dwelling Coverage
This coverage is referred to as “coverage A” on the policy declarations page and is the upper limit that the insurance carrier would pay in case of a total loss. Some companies also put a percentage increase on top of this coverage as a sort of “cushion” in case of a total loss. Dwelling coverage is a very important thing to get accurate as it is the bulk of the insurance policy
Rental Property Insurance – Personal Property Coverage
It is important to note that Rental Property Insurance policies usually have an abbreviated version of the Personal Property Coverage when compared to a conventional homeowners policy. The amount of coverage can usually be changed at policy issuance but the baseline is usually only $10,000 of personal property coverage. The insurance company figures that there will be a limited amount of the owners possessions in the rental property.
Rental Property Insurance – Liability Coverage
Liability Coverage is extremely important when discussing Rental Property Insurance. There are two main frames of thought when it comes to proper liability protection. Consumers either own the home through a limited liability company or insure the home with a maximum amount of liability coverage with an additional umbrella policy too. Both options are viable and should be discussed with a professional before making a decision. *this is note legal advice.
Rental Property Insurance – Loss of Income
If the rental home is insured and has a covered loss then it can be assumed that there will be a certain loss of income due to the claim. This coverage kicks in and offsets a portion, if not all, of the loss of income due to rent not being paid during a certain period.